Good morning and happy New Year. Welcome back to Survival Guide. I’m Isabella McRae, senior reporter at the Big Issue.

As this is the first newsletter of 2025, we thought it would be useful to start off by looking at some of the key changes we’re expecting this year in terms of the cost of living, what we would like to see happen, and where you can go to get help.

It’s been a little bit of time since prices were rising at the crazy level seen at the height of the cost of living crisis, but unless you’ve had a whopping pay rise, you’re probably not feeling any richer. That’s because prices are still rising – just at slower rates.

And after all those huge rises, any increase in prices is hard for most of us to take. The good news is that inflation seems to have levelled out and is expected to remain that way unless anything major happens to shock the economy (like a pandemic or a war).

The bad news is that the bills keep coming, and some of them are getting more expensive. Take energy bills, for example – they just went up in January and are going up again in April.

It’s only an increase of a few pounds every month – but even that will take its toll, particularly on low-income households. On average, energy bills are £600 more expensive a year than they were in 2022.

So what do we do about it? Well, we need to keep on campaigning for the government to give people the support they need. That includes introducing measures to keep energy bills down, like a social tariff which gives vulnerable people a discount on their energy bills, and properly insulating our homes so we’re not spending more on energy than we need to.

We also need proper support for low-income households, with a benefits system that ensures people can actually afford the essentials they need to survive like food and heating, at the very least. We’re expecting Labour to announce how it plans to reform the benefits system in the coming months, and I’ve got a little explainer on what to look out for coming up in this newsletter.

It’s absolutely vital that you claim the support you need this year – there’s no shame in asking for help. It’s been a rough time and millions of people are relying on benefits to survive. In fact, nearly a third of the country is claiming some form of benefit or pension. Read to the end for more information on where you can go to get help.

Also in this newsletter, anti-poverty campaigners share their thoughts on how we can keep hope alive when so many people are going hungry…

If you have a story to share, we want to listen. Get in touch at isabella.mcrae@bigissue.com or share your story here.

What’s going to happen with benefits in 2025?

Labour started outlining some of its plans to reform the benefits system in 2024 – but just a few months into power, the fledgling government had little time to flesh those ideas out and claimants were left facing uncertainty about how the changes will impact their lives.

In 2025, we should see the government reveal more details. It’s already identified the disability benefits system as a priority for reform – and it’s right that changes definitely need to be made (we’ve covered this pretty extensively at the Big Issue). 

Labour wants to get more disabled people and those with long-term health conditions into work, but campaigners have repeatedly urged the government that this must not be done through cutting back support. This could actually have the adverse effect of pushing people further away from employment by worsening their physical and mental health.

Ministers plan to cut £3bn from the welfare bill, but we don’t know exactly how yet – it could be through changes to the work capability assessment, but that’s something we’ll have to wait and find out about when the plans are revealed in spring. There will be a consultation on this, where you’ll be invited to share your views, so keep an eye out. We’ll keep you updated in this newsletter.

Another change is that benefits are going up in April, although just by a few pounds for most claimants every month, and charities are continuing to call for a proper increase to universal credit so that people can afford the essentials. 

We might see talk of the two-child benefit cap in the government’s child poverty strategy which will be revealed in spring, although ministers have so far remained firm in their refusal to scrap it. It’s also worth keeping an eye on whether Labour takes a stance against the punitive sanctions regime which had been established by the previous government. 

And there will undoubtedly be more announced about Labour’s plans to crack down on welfare fraud, including details on how much access officials will get to bank accounts.

Read more about the changes we expect in the benefits system in 2025.

In case you missed it

How do we keep hope alive in 2025 when so many people are going hungry? Sabine Goodwin, director of the Independent Food Aid Network, writes about what the Labour government needs to change to end the country's dependency on food banks. Read it here.

Hunger is a political choice. How do we end it in 2025? Dr Regina Murphy Keith, who leads the Global Public Health Nutrition MSc at the University of Westminster, writes about how to end hunger in the UK and globally this year and beyond. Find out more.

Labour must actually bring change in 2025 – and that means changing its approach to benefits. Ruth Patrick writes that the Labour government needs to reform the social security system so that it provides a proper safety net for people living in poverty. Read about it.

This year has offered children glimmers of hope – but 2025 must see tangible change. Child poverty has long-lasting effects on physical and mental health, which can last long into adulthood, writes chief executive of Barnardo's Lynn Perry. Find out more.

There's no quick fix for single parent poverty but there is a clear first step – Labour must take it. Single parent stigma and discrimination are age-old problems that are still fuelling poverty today, writes Ruth Talbot. Read about it.

Food banks are a lifeline – but not the solution. There are better ways to tackle poverty in 2025. Trussell’s director of policy, research and impact explains how the UK government could begin reversing the tide of hunger and hardship. Here’s the piece.

Energy bills expected to rise again in April – and it could be 'soul destroying' for struggling families. Campaigners are calling on the government to do more to help people afford their energy bills, with targeted help for vulnerable households. Get the story.

Nearly a third of people feel too 'embarrassed' to seek support for their energy bills in the UK. Jessica Taplin, chief executive of the British Gas Energy Trust, writes about why fuel poverty is a crisis that cannot be ignored. Find out more.

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Where can you get financial help in 2025?

Just under £23bn in benefits and financial help goes unclaimed each year, which means you could be entitled to more support than you realise. You can use a benefits calculator to find out what you might be entitled to claim – including from Turn2Us, Policy in Practice and entitledto. 

Citizens Advice offers information and services to help people and they can advise you as to what financial support is available from the government to help you. You can also find local advice services here. The government’s Help for Households website explains what other support you could be eligible for.

You can find out what grants might be available to you using Turn2Us’ grant search. If you are unable to pay your bills, your local council may have a scheme that can help you. Local councils may be able to give you debt advice, help you get hold of furniture and support you with buying food and paying your energy bills.

You can also find out what support your council offers through End Furniture Poverty’s local welfare assistance finder or by contacting your local authority directly. 

If it’s energy bills you’re struggling with specifically, we’ve got an explainer here on where to get help – which includes information on whether your energy supplier might offer a grant or discount.

You can find your local food bank through Trussell’s website or the IFAN’s member’s map. You can also call Trussell’s free helplines and talk to a trained adviser. It’s 0808 208 2138 if you live in England or Wales, and 0800 915 4604 if you live in Northern Ireland. You should contact your local council if you live in Scotland.

There’s lots more cost of living help available to people who need it.